Car Payment Calculator
Sticker price to real monthly payment, with trade-in, tax and fees included
Trade-in, tax & fees Leave these at zero if they do not apply to your deal.
How the price becomes your payment
| Line | Amount | Detail |
|---|
How to Use
- 1Enter the out-the-door price you agreed, not the advertised price.
- 2Add your down payment, the APR you were quoted and the term.
- 3Fill in the trade-in and your local sales tax if they apply.
- 4Open the breakdown to see every line between the price and your payment.
The Formula
- Trade-in equityValue − amount still owed
- Taxable amountPrice − trade-in (most states)
- Amount financedPrice + tax + fees − down − equity
- Monthly paymentM = P · i / (1 − (1+i)⁻ⁿ)
- Total costPrice + tax + fees + interest
Quick Examples
Tap an example to load it above.
Everything about the Car Payment Calculator
Why the number on the window sticker is never the number you finance.
This car payment calculator starts where a car deal actually starts, at the sticker price, and works through sales tax, title and dealer fees, your down payment and the trade-in to reach the amount you will really finance and the payment you will really make.
Most payment calculators ask only for a loan amount, which quietly assumes you already know it. You do not: the amount financed is the last thing anyone tells you at a dealership, and it is usually thousands more than the price you negotiated.
The trade-in tax credit is real money. In most US states sales tax is charged on the price after the trade-in allowance, so trading a $12,000 car against a $35,000 car at 6% tax saves you $720 in tax alone. Eight states (California, DC, Hawaii, Kentucky, Maryland, Michigan, Montana and Virginia) tax the full price regardless. Switch the "Trade-in cuts the taxable amount" field to match your state and watch the payment move.
What a longer term really costs
Stretching the loan is the oldest way to make an expensive car look affordable. Here is the same $30,000 financed at 7% APR across every common term:
| Term | Monthly payment | Total interest |
|---|---|---|
| 36 months | $926 | $3,347 |
| 48 months | $718 | $4,483 |
| 60 months | $594 | $5,642 |
| 72 months | $511 | $6,826 |
| 84 months | $453 | $8,034 |
Going from 36 to 84 months drops the payment by $473 but more than doubles the interest. Worse, the car depreciates far faster than an 84-month loan pays down, so you spend most of those seven years owing more than the car is worth.
Being upside down, and how it follows you
You are upside down, or underwater, when you owe more on a car than it is worth. Trade it in anyway and the shortfall does not vanish: it is added to the new loan. Enter a trade-in worth $9,000 with $14,000 still owed and this calculator shows the $5,000 gap being financed along with the new car, which is exactly what the dealer paperwork does. You then start the new loan already underwater.
Four things that actually lower the cost
- 1Negotiate the out-the-door price, never the payment
"What monthly payment are you looking for?" is a question about your budget, not the car's price. Any payment can be reached by lengthening the term. Agree a total price first, then work out the payment here.
- 2Get pre-approved before you walk in
A credit union or bank pre-approval gives you a rate to beat. Dealers can and do beat it, and dealer financing is often genuinely competitive, but only when they know they have to. Without a number in your pocket you have nothing to compare against.
- 3Put 20% down on a new car, 10% on a used one
A deposit that large keeps you right side up through the steep first-year depreciation, and a smaller loan often unlocks a better rate as well.
- 4Treat a cash rebate as extra down payment
This calculator has no rebate field on purpose, because a cash incentive behaves exactly like more money down, so add it to the down payment. When the choice is a rebate or a low promotional APR, run both versions here and compare the total cost tile.
Should you roll the tax and fees in?
Rolling them in keeps cash in your pocket today, but you then pay interest on your own sales tax for the whole term. On the default deal above that is a few hundred dollars for the convenience. Switch "Roll tax & fees into the loan" between yes and no and compare the "Total interest" tile before deciding.
Related calculators
If you already know your loan amount and just want the payment, amortisation schedule and extra-payment savings, the loan calculator is the simpler tool. For a home, the mortgage calculator handles the down-payment and loan-to-value split that a car loan does not have.
Rates, tax rules and fees vary by state, lender and credit score. Figures here are estimates to plan with, not a finance offer.
Frequently Asked Questions
How do I calculate my monthly car payment?
Enter the vehicle price, your down payment, the APR you were quoted and the term, then add your sales tax rate, fees and any trade-in. The calculator adds tax and fees to the price, subtracts your down payment and trade-in equity, and runs the result through the standard loan formula. A $35,000 car with $5,000 down at 7% over 60 months, with 6% tax and $800 of fees rolled in, comes to about $651 a month.
Do I pay sales tax on the full price if I trade a car in?
In most US states, no. Tax is charged on the price after the trade-in allowance, so a $12,000 trade against a $35,000 car at 6% saves $720. Eight states tax the full price regardless: California, Washington DC, Hawaii, Kentucky, Maryland, Michigan, Montana and Virginia. Use the "Trade-in cuts the taxable amount" field to match your state.
What does it mean to be upside down on a car loan?
It means you owe more than the car is worth, which is common in the first years of a long loan because cars depreciate faster than the balance falls. If you trade it in, the shortfall is added to your new loan. Enter the trade-in value and the amount still owed and this calculator shows that gap being financed, so you can see the real cost before you sign.
Should I roll the taxes and fees into the loan?
Rolling them in means less cash at signing but interest charged on your own sales tax for the whole term. Paying them up front costs more today and less overall. Switch the "Roll tax and fees into the loan" field between yes and no and compare the total interest tile. On a typical deal the convenience costs a few hundred dollars.
Is a 72 or 84-month car loan a bad idea?
It lowers the payment but raises the cost sharply. On $30,000 at 7%, moving from 36 to 84 months cuts the payment from about $926 to about $453 but lifts total interest from roughly $3,347 to $8,034. You also stay upside down for years, which makes selling or trading the car early expensive. If only the longest term fits your budget, that is usually a sign to look at a cheaper car.
Should I use dealer financing or my own bank?
Get pre-approved by a bank or credit union first, then let the dealer try to beat it. Dealer financing is often genuinely competitive, especially with manufacturer promotional rates, but you only find out when you have a rate to compare against. Compare APRs rather than payments, since a longer term can hide a worse rate behind a smaller monthly figure.
How much should I put down on a car?
The usual guidance is 20% on a new car and 10% on a used one. That much down keeps you from going upside down during the steep first year of depreciation, lowers the interest you pay and can qualify you for a better rate. A cash rebate counts, so add it to the down payment field, since it behaves in exactly the same way.
Is this car payment calculator free and is my information stored?
It is completely free with no sign-up, and every figure is calculated inside your browser, so nothing about your deal, your trade-in or your finances is sent to a server or saved anywhere.